Sun. May 26th, 2019

Plinko’s Picks – DAPS: Cult. Classic?

What is DAPS?

DAPS, or Decentralized Anonymous Payment System, is a relatively new privacy coin project.  They’ll be implementing their new proof method, called “Proof of Audit,” along with a combination of existing privacy tech.  The team promises that this will be the first completely anonymous privacy coin in the world of crypto.

DAPS will not compromise on any privacy features.  No other privacy coin is wholly anonymous. DAPS will be completely untraceable.  The only tracking will be the total supply and block height via the Proof-Of-Audit block.” – DAPS Team

Shortly after the project’s inception, it’s had an almost cult-like following.  Many people have compared the DAPS community to the intense following Verge (XVG) used to have.  Additionally, there’s a looming hype, with many investors hoping for a price surge similar to what Verge saw in 2017.

Will investors be disappointed or is the cult here to stay?

Background

The DAPS project became known to the public early in 2018 when it took over Peepcoin (PCN) and used it as a foundation.  It made sense. PCN was listed on several exchanges and had some existing infrastructure. The plan was to use this to build a community while working on the new project.  

Within weeks the project was surrounded by enormous hype.  But while the price soared, the project was dealing with a variety of undesirable supply issues.  Primarily, the previous developer for PCN owned a significant portion of the supply. The original plan for PCN was to swap PCN coins directly for DAPS coins.  However, due to concerns about supply bias and abusive staking, a team member, known as Captain Daper, announced in the DAPS Telegram channel that they would start DAPS from scratch and would abandon PCN altogether.  He had done so without consulting the other team members and no “official” announcement had been made. However, the damage was done. There was a mass panic selloff, the price bottomed out, and the community was in an uproar.

The team took relatively quick action, taking community feedback into consideration.  Anyone who proved they held PCN at the time of the crash in June 2018 was rewarded with a 1:1 DAPS token airdrop.  From there, the team has worked to regain credibility.

Daper was removed from the team in December 2018.

Was the Peepcoin debacle a scam?

Note: I decided to discuss this specifically since many people have questions (and accusations) about this.

It’s very unlikely.  Why? Because purposely dropping the price by abandoning the project serves no purpose.  If someone intentionally dropped the price with the intent to profit from it, they would have to bring the price back up.  Sell high, buy low, sell high. This never happened. Additionally, there’s presently a variety of evidence reinforcing the legitimacy of the project – legal documentation (https://steemit.com/daps/@dapscoin/daps-development-certification-press-release), partnerships with reputable projects, and visible and proven managers.  

So was it a scam?  No. Was the situation handled poorly?  Yes, very.

How is DAPS superior to other privacy coins?

DAPS will combine existing technology with a new proof method called Proof Of Audit (PoA), which they’ve created.  Essentially, all coins, to date, are vulnerable to some degree of attack. DAPS claims that they will not be vulnerable to most known attack methods, while also being the first completely private coin available.

Think of DAPS as a new hybrid, having a combination of the best tech existing privacy coins have to offer.  So you’ll be seeing Masternodes, PoW – PoS seesaw rewards, RingCT, TOR/OBFS4 relays, and other features.

Due to the vulnerabilities of relying solely on PoW and PoS, PoA will be be utilized as a third method of chain verification.  This combination is expected to make this the most secure blockchain to date. More on that in the next section.

Ultimately the advantage lies in the fact that the chain will be completely obfuscated.  No other privacy coin does this. Why? Older projects haven’t implemented all of the features that would be required to achieve this.  Additionally, if they weren’t completely private from the start, it’s possible that the chain could be analyzed based on previously visible data to continue tracking transactions.  Meanwhile, newer projects have the means, or at least most of them, but don’t have the desire to go completely trust-less.

The trust problem is addressed by Proof of Audit.  This is what is expected to set DAPS apart.

Note: “Trust” implies that participants in the network (coin holders) have to trust an individual or set of individuals, who have the ability to manipulate the chain, not to.  DAPS claims to be the first example of trust-less governance in the world of crypto.  

Once mainnet goes live, DAPS will be open source.  So the tech will be open for public review.

What is Proof of Audit?

Note: This information was withheld by the team until now.  Adel, the project’s head of operations, was kind enough to provide this to me directly so it could be shared in this article.  I will provide the information exactly as it was provided to me, rather than summarize or interpret the information for the audience.

“What is PoA?

Proof of Audit is a consensus model whereby the validity of the network is maintained by checking that the maximum supply of the chain has not been altered in any way.

How is this done?

Proof of Stake (PoS) blocks are generated by staking nodes or masternodes on the network. These blocks contain the confirmed transactions that have taken place over a specified period of time.  Each vin (transaction in) and vout (transaction out) contains a number of coins. The sum totals of coins moved either in or out must not affect the total number of coins on the network.

What PoA does, is it examines each PoS block since the last PoA block and audits the transactions and the PoS block itself to make sure that the totals still match up and that the total supply has not changed.

How do we mitigate block injection?

Block injection is a common method of attack in PoS chains where a bad actor will attempt to inject a fake PoS block into the chain just before the miner kicks in to validate the chain.  If successful, it will give the bad actors node the longest chain and allow them to manipulate the entire chain from there on. PoA mitigates this by having a random time sequence in which the PoA miners kick off the auditing process.

This makes it very difficult for a bad actor to inject a block at the right time and not have the chain rejected and the node banned.  Also, the injected block would have to ensure that the total supply is not altered otherwise his chain will be seen as a bad chain and rejected and the node banned.”

Coming Soon

Consensus

DAPS will have a booth at Consensus in NYC in May 2019.  Since there was no ICO, the team is looking to not only market the project and make connections, they’ll also be on the hunt for investors.

Mainnet

Mainnet is expected to launch by the end of Q2 2019.  Desktop and mobile wallets will be available.

Challenges for DAPS

The Past

The project’s history is scattered with potholes.  The issues with PCN were and still are the biggest bruises on the project.  Since then, there’s been finger-pointing between projects, DAPS tokens stolen on Cryptopia, a handful of other minor exchange issues, and a compromised Twitter account.  This has lead to considerable backlash and FUD. But, relatively, the issues since PCN have been minor.

Competition

There’s a variety of privacy coins already on the market.  DAPS will be competing with major players like Dash, Monero, Verge, and PIVX.  There are a few newer contenders, such as Piratechain, who are fighting for market share as well.

Complete Privacy Can Be Scary

Some people believe that being completely private can be detrimental and perhaps even harmful.  There are some diehards that are big advocates for transparency.

Its Community

The project’s community, to some outsiders, have seemed overly positive, supportive, and loyal.  Some claim this a red flag for serious investors because those within the community don’t appear to be scrutinizing the project.

Undisclosed Tech

The DAPS team has kept their development secret in order to protect their original tech from being copied by others.  This makes sense. But the lack of public information about the unique tech, combined with some of the aforementioned issues, makes some people hesitant to invest early.  

Summary

With growing scrutiny and regulation in the industry, privacy coins are expected to become increasingly coveted and valuable. As demand builds, it’s likely that some of the top privacy coins will give way to newer projects with more flexibility and unique tech.  Additionally, we have to remember that this industry is still very young. And while projects like Monero and Dash are currently viewed by many as the gold standard of privacy coins, both coins are only a few years old. Nothing is certain.

The DAPS project endured a major setback with PCN, and the resulting FUD has been a thorn in the project’s side ever since.  Many investors were quick to dismiss the project after PCN without taking the time to consider how the team reacted to the issue and what they’ve done since then.  They’ve made significant progress and held their heads high the entire way. There are still some questions left to be answered. But if everything works as advertised, the tech will speak for itself.

DAPS is a fine project.” – John McAfee

Team Members To Note

Adel de Meyer, Co Founder + Head of Operations

Adel has worked on several blockchain and cryptocurrency projects and has a significant presence in the space.  She’s been a featured speaker at blockchain conferences, interviewed some of the biggest names in the industry, and has been a contributing writer for respected news sources, such as Hacker Noon.

Twitter: @AdeldMeyer

Mike Pletman, Business Development Manager + Advisor

Mike has 15 years of experience in finance, marketing, and technology.  He previously worked with PIVX as Project Manager for Marketing, Creatives, and Business Development.  During his time there, the PIVX market cap rose 32,000% in value (USD).

Twitter: @GoodCryptoVibes

Andrew Huntley, CTO

Andrew has 19 years of technical experience.  This is his first venture into blockchain development, according to his LinkedIn profile.  Over the years, he has been involved in almost every industry including mining, health, government, travel, tax, banking, online gaming, forensics, social media platforms and research.  Andrew has architected both high-end single-use systems, enterprise scale applications and serverless systems. Andrew is an IT professional responsible for managing DAPS development, product and he architected and executed the DAPS airdrop systems.

Twitter: @DAPS_Spock

Partners

GIN

Snode

Exchanges

BitMart

Stex

Next.Exchange

Crex24

Coinvest

txbit.io

DAPS Token Specs

Platform: Ethereum

Token Type: ERC-20

Total Supply: 60,000,000,000

Market Cap: $5.5 million (approx.)

DAPS Coin Specs

Block verification: PoA/PoS/MN

Proof-Of-Audit algo: Unique

Proof-of-Stake algo: PoSV3

Block time: 1 minute

Block reward: 1050 DAPS

Founder Fee per block: 50 DAPS

Founder fee [block fee] usage: Monthly airdrop fund, development fund, other compensation to team

Effective Block Reward: 1,000 DAPS

Block Reward Split: 900 MN/PoS, 100 PoA miners

See-Saw MN/PoS Reward:  60/40 MN/PoS reward split, rebalance up to maximum of 40/60 MN/PoS

DAPS Initial Coin Supply: Maximum 60,000,000,000

Block Emissions Limit: 10b

Years of emissions: ~16 years

Approximate annual inflation: 4-12% [Staking; factor of difficulty+luck], or ~550 million DAPS per year until 10b emissions cap is reached.

Masternode Collateral: 1,000,000 DAPS

Confirms to spend: 4 blocks

Confirms to stake: 200 blocks

Development allocation: TBD

Blockchain Features

Proof-Of-Audit – DAPS’ unique on-chain solution to the trust problem of private crypto networks.

RingCT – Leading privacy protocol.  All features will be enabled since Trust issue will be addressed.

PoSv3 – Fair and energy-efficient.  Prevents rich from getting richer.

Masternodes – 24/7 online collateralized nodes to augment chain and work as service nodes.

Multinodes – More than one masternode per instance.

Mandatory TOR/OBFS4 node relays – Nodes/wallets will have mandatory TOR/OBFS4 relays, allowing connection in areas where even TOR is unavailable.

Stealth Addresses – Mandatory stealth address with optional public address system, allowing users to optionally track publicized spending.

About Plinko

Plinko got into crypto in 2017. He spent some time working in banking before moving into tech and currently works as a software analyst. He’s a casual investor and usually takes an FA-heavy approach to investing. You can find him on Twitter here: @cryptoplinko

The Daily Chain – Inform. Educate. Succeed.


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